On Friday, the House of Representatives passed a $1.2 trillion infrastructure bill in a 228–206 vote, sending the legislation to President Joe Biden for his signature.
The bipartisan infrastructure bill contains a cryptocurrency tax reporting requirement.
The Infrastructure Investment and Jobs Act would put $550 billion of new funding into transportation projects, the utility grid, and broadband. Including $110 billion for roads, bridges, and other major projects, along with $66 billion for passenger and freight rail, and $39 billion for public transit.
There is a component within the bill for the crypto industry that seeks to expand the definition of a broker for IRS purposes.
There is a high possibility that that definition could be too broad, capturing entities like miners and other parties that don’t facilitate transactions.
The turmoil began when cryptocurrency provisions were added to the bill at the last minute in late July, with the stated goal of raising an estimated $28 billion by closing the crypto tax gap.
The bill may have a negative impact on mining operations in the U.S., although analysts expect the country to remain the undisputed leader in the cryptocurrency mining industry.
Another provision included in the bill will amend tax code section 6050I, raising additional concerns in the crypto industry.
The Treasury Department still has to explain how it plans to interpret the bill and publish guidance spelling out how businesses or other entities will comply with it.
